Microsoft 365 price increase

If you use Microsoft Word, Excel or PowerPoint, it’s likely you pay for it via an annual or monthly subscription called Microsoft 365.

Around the end of 2024, the price of Microsoft 365 increased:

The company reasons that they have added new artificial intelligence (AI) features, including an AI-powered graphics app called Microsoft Designer.

Act now to avoid it

Microsoft has quietly made available the option for existing subscribers to switch to ‘Classic’ subscriptions that exclude these additions and retain the old prices:

  1. Visit the Microsoft account: Subscriptions page.
  2. To the right of the heading for your Microsoft 365 subscription, click the blue ‘Manage’ link.
  3. Find the option to cancel the subscription, and click it.
  4. Instead of cancelling, select the option to switch to the Classic plan. At the time of writing, it looks like this:
Sketch of the page where you can switch to the Classic subscription.

When I tested this, Microsoft wanted to re-authenticate the stored payment card. So, have your mobile phone or card reader ready in case your bank requires this — even though no payment will be taken until your normal renewal date.

Microsoft says that the option to switch to a Classic plan will be available for a limited time. It also remains to be seen whether the Classic plans will themselves see a price increase at some point: the current prices haven’t changed for at least a decade, so a small rise in line with inflation would arguably be reasonable.